A bipartisan group of lawmakers introduced the GRACE for Military Survivors Act, which proposes to amend the Internal Revenue Code of 1986 to give Gold Star families more time to make major financial decisions after losing a loved one in the line of duty.
Current Law and Proposed Change
Under current federal law, when a service member dies, their beneficiaries receive military death gratuities and Servicemembers’ Group Life Insurance (SGLI) payments to help ensure long-term financial stability. However, families are currently required to execute these transfers within one year of receiving the funds to avoid tax penalties. The proposed bill would triple the amount of time families have to plan and reallocate those resources, from one year to three years.
The bill was developed in coordination with Gold Star Spouses of America to address the specific real-world timeline challenges facing surviving spouses and children who are dealing with immediate logistical, emotional, and relocation disruptions. A wide coalition of veterans and military family advocacy groups have explicitly endorsed the bill.
Original reporting: Tampa Free Press — read the source article.
